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VisionFund wins ADB Civil Society Partnership Award

FRANKFURT/MANILA – May 3, 2016 – VisionFund International (VFI), World Vision’s microfinance arm, has been
announced as the winner of the Asian Development Bank’s (ADB) Civil Society
Partnership Award for 2016. The award was presented today at the 49th
ADB Annual Meeting held in Frankfurt, Germany, in recognition of VisionFund’s
development of an innovative ‘Asian Region Disaster Insurance Scheme’ (ARDIS) in
partnership with industry stakeholders and harnessing experience in supporting
clients’ recovery following Typhoon Haiyan, through their microfinance
institution in the Philippines, Community Economic Ventures, Inc.

The awarding
took place during the Civil Society Program of the Annual Meeting, organized by
ADB's NGO and Civil Society Center, and the award was presented by Bambang Susantono, Vice-President
for Knowledge Management and Sustainable Development of the Asian Development
Bank (ADB).

The award is launched
by ADB for the first time this year to highlight and support the importance of collaborating
with civil society in efforts to address the issues driving poverty in Asia and
the Pacific. The award was open to Civil Society Organisations and NGOs in ADB’s
developing member countries which demonstrate sustainable social impact in the
context of an ADB-supported project.

“We are
delighted to receive this award, especially as it is recognition of the
importance of preparation before a disaster for financial resilience and rapid economic
recovery,” says Michael Kellogg, Typhoon Haiyan Response Director, VisionFund International.
“We now have clear evidence that our ‘recovery lending’ approach supports
economic recovery of clients and their communities after disasters without
creating over-indebtedness, while simultaneously reducing losses for
microfinance institutions.”

Disasters
triggered by natural hazards pose an increasing risk to Asia’s poorest people
and despite the prudent preparations of households and communities, the effects
can set back economic progress for years. Typically, after a disaster, microfinance
institutions do not have the funds to rapidly restructure existing loans and
deploy fresh loans into affected communities in a way that supports the
rebuilding of their local economies. ARDIS is poised to change that situation.

“The model we are
developing combines climate science, weather index derivative/insurance and liquidity
funds to create a financing mechanism for our recovery lending,” explains Stewart
McCulloch, VisionFund’s Global Insurance Director. “It is an insurance-backed liquidity
fund that ensures a microfinance institution has the financial ability to
execute a recovery lending program to support communities after a disaster.”

ARDIS is being
developed in partnership with GlobalAgRisk, led by Professor Jerry Skees, and is
supported by grants from the UK government (DFID), the Rockefeller Foundation,
FMO (the Dutch development bank) and the Asian Development Bank (supported by a
fund from the Government of Canada).

The scheme is
now in design stage and is to be rolled out next year to four countries reaching
more than 450,000 Asian clients. Max Robinson, VisionFund’s COO added, “Looking
ahead, we see this as an industry solution. The more it is adopted, the better,
both for microfinance institutions that want to support communities after a
disaster, as well as affected families that need the financial support at these
very challenging times.”

VisionFund’s
microfinance services are integrated into the development and humanitarian
response work of World Vision which carries out programmes in health, water,
sanitation, education and economic development. The organisations have a shared
vision of improving the lives of children living in poverty.

The 49th ADB
Annual Meeting held in Frankfurt saw a gathering of over 3,000, comprising
finance and development ministers, central bank governors, and other government
officials, business leaders, investors, journalists, and representatives from
civil society. The theme of the 2016 Annual Meeting is ‘Cooperating for
Sustainability’ with the focus being on closer Asian and European linkages to
support sustainable development.

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ABOUT
ASIAN DEVELOPMENT BANK (ADB)

Asian
Development Bank, based in Manila, is dedicated to reducing poverty in Asia and
the Pacific through inclusive economic growth, environmentally sustainable
growth, and regional integration. Established in 1966, ADB in December 2016
will mark 50 years of development partnership in the region. It is owned by 67
members—48 from the region. In 2015, ADB assistance totalled $27.2 billion,
including co-financing of $10.7 billion. For more information please visit: http://www.adb.org/

ABOUT
VISIONFUND INTERNATIONAL

VisionFund
International, World Vision’s microfinance arm, has been improving the lives of
children in the developing world for more than a decade. By offering small
loans and other financial services to families living in poverty, its clients
develop successful businesses, enabling their children to grow up healthy and
educated. Last year, VisionFund International MFIs provided 1.3 million loans
at a 98 percent repayment rate, with nearly three-quarters of these going to
women, and over half to clients actively involved in farming. In 2015, close to
four million children were impacted through its lending network located across
more than 30 countries in Africa, Latin America, Asia, the Middle East and
Eastern Europe. For further information please visit VisionFund
International.org